Russian budget expenditures significantly exceeded revenues. Ministry of Finance: the federal budget deficit amounted to 983 billion rubles in January-May

As a result of the first five months of 2024, the federal budget deficit amounted to a total of 983 billion rubles. The significant excess of state expenditures over revenues was reported on the Ministry of Finance’s website. According to the preliminary estimate of the department, the total amount of state treasury expenditures in January-May was approximately 15.3 trillion rubles, while revenues were about 14.3 trillion. Thus, the federal budget deficit reached nearly 1 trillion rubles.

On a yearly basis, state expenditures increased by 18.9 percent. The department did not disclose the reasons for the increase, nor did it detail specific federal spending items. In turn, budget revenues during this period increased by 45.5 percent. Despite this dynamic, the authorities failed to cover the deficit.

Previously, the Ministry of Finance raised its forecast for the federal budget deficit for 2024 by 525 billion rubles, to 2.12 trillion rubles, or 1.1 percent of GDP. At the same time, the total amount of state expenditures, according to the updated estimate of the department, will reach 37.2 trillion rubles. As of the end of the first four months, the budget deficit was 1.484 trillion rubles, or 0.8 percent of GDP.

We remind you that earlier experts from The Wall Street Journal noted that for each day of the war against Ukraine, Russia has to pay approximately $300 million. Additionally, this amount does not include the large-scale rearmament of the Russian Federation and the sanctions from Western countries.